Electric vehicle manufacturer, Faraday Future, has encountered further obstacles as it struggles to overcome its ongoing challenges. The company recently announced a delay in Phase 2 deliveries until August, impacting the “Futurist Product Officers” for whom deliveries were originally scheduled to commence by the end of the second quarter. It’s important to note that traditional deliveries are set to occur only during the third phase, contingent upon the receipt of adequate financing within the specified timeframe.
While Faraday Future did not delve into specifics, it attributed the delay to “a supplier’s timing constraints and the completion timing of an additional system testing related to the company’s enhanced safety testing of a single unique product feature of the FF 91 2.0 Futurist Alliance.”
However, this delay isn’t the sole disappointing development for the troubled automaker. Faraday Future’s Board of Directors has proposed a reverse stock split, subject to stockholders’ approval. The exact stock ratio within a specified range will be determined by the board post-approval.
Faraday Future describes the stock split as a “strategic decision” motivated by the fact that “many brokerage houses and institutional investors have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers.”
The primary objective of this move is to increase the stock price above the minimum threshold of $1 per share, necessary for listing on the Nasdaq stock exchange. However, trading was halted for the Juneteenth holiday, with Faraday Future’s stock concluding Friday’s session at $0.45 per share, and subsequently plummeting to $0.28 per share in after-hours trading.
As Faraday Future grapples with production delays and seeks to improve its financial standing, the company remains dedicated to navigating these challenges and securing its position in the competitive electric vehicle market.
